News

17 February 2017

5G - bigger impact than fibre broadband.

O2 UK has predicted that 5G mobile networks will have a
much bigger impact on the UK economy than the move to fixed fibre
broadband.According to the study by
Development Economics commissioned by the mobile operator, the national 5G
infrastructure is expected to outstrip the economic benefits of fibre broadband
by 2026, just six years after the 5G roll-out starts.

The research suggests that the UK should focus on 5G
infrastructure as part of efforts to shore up its economy post-Brexit.The new network will introduce new
industries, platforms and services, such as 3D video calls and smart home and
health applications, O2 said.In
addition to GBP 7 billion of estimated direct economic value through businesses
using 5G, the ‘ripple effect’ through the supply chain will also see it
indirectly boost the nation’s productivity by GBP 3 billion more a year, the
report predicts.

The added value of 5G mobile connectivity to the UK
economy will also become apparent almost twice as quickly as fibre
broadband.This is based on the current
BT Openreach roll-out rates and the experience with rolling out 4G networks in
the UK.Overall, the study estimates
that the combined value of 4G and 5G connectivity will add GBP 18.5 billion to
the economy in less than a decade, compared to just GBP 17.5 billion for
broadband.